Introduction of Tourism and Hospitality Marketing
Characteristics of the Tourism Industry
Tangible
Inseparable
Variable
Seasonal
Substitutable
High involvement
A form of product that consists of activities, benefits or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything. The government sector, with its court, employment services, hospitals, loan agencies, military services, police and fire department, postal service and schools, in the service business. An essential ingredient to any service provision is the use of appropriate staff and people. Refers to the systems used to assist the organization in delivering the service. Where is the service being delivered? Physical Evidence is the element of the service mix.
Introduction of Tourism and Hospitality Marketing
Characteristics of the Tourism Industry
Tangible
Inseparable
Variable
Seasonal
Substitutable
High involvement
A form of product that consists of activities, benefits or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything. The government sector, with its court, employment services, hospitals, loan agencies, military services, police and fire department, postal service and schools, in the service business. An essential ingredient to any service provision is the use of appropriate staff and people. Refers to the systems used to assist the organization in delivering the service. Where is the service being delivered? Physical Evidence is the element of the service mix.
Contents
Targeted Advertisements Definition
Who Makes It?
How they make it?
How Targeted Ads Work Video
What are The Targeted Advertisements advantages?
What are The Targeted Advertisements disadvantages?
How The Targeted Advertisements Connected with User Privacy?
What are the simple ways to avoid targeted ads?
Statistics
References
As entrepreneurs it can be difficult to navigate the online world and decide what digital channels are appropriate through each phase of your business plan. This slide deck is designed to walk you through the process of set up and execution in digital channels.
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Tässä raportissa vertaillaan suomalaisia maaseutumatkailijoita, jotka suosivat eri tyyppistä majoitusta. Majoitustyypit ovat hotellit, maatilamajoitus, mökkimajoitus ja muu majoitus.
Tässä raportissa kuvaillaan suomalaisia maaseutumatkailijoita ja heidän matkustuskäyttäytymistään kotimaan maaseutulomalla. Raportissa esitellään tietoja maaseutulomasta, aktiviteeteista, motivaatioista, tiedonetsinnästä ja matkakohteen valinnasta.
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This presentation talks about advanced online business for tourism companies, including search engine marketing and e-mail marketing. For all course presentations, including videos, please see https://www.tourismmarketingandmanagement.com/2016/11/11/what-is-e-business-in-tourism/
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This presentation talks about tourism destination marketing and management in the era of online business. For all course presentations, including videos, please see https://www.tourismmarketingandmanagement.com/2016/11/11/what-is-e-business-in-tourism/
Tourism Marketing and Management Master's Degree ProgrammeJuho Pesonen
Master's Degree Programme in Tourism Marketing and Management provides excellent study opportunity for those interested in working in the tourism field. We train those who are responsible for taking the field forward, both in academia as well as in practice. If you want to study tourism and make it better, then apply for our programme. See www.finlanduniversity.fi and www.uef.fi/tmm
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Tässä esityksessä esittelen tuloksia kolmesta kotimajoitukseen liittyvästä tutkimusartikkelista. Artikkelit käsittelevät Airbnb:n ja vastaavien palveluiden käyttäjiä ja myös matkailijoita, jotka eivät kotimajoituspalveluita käytä.
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Online market segmentation
1. Online market segmentation in
tourism
Juho Pesonen, Ph.D. (Econ.)
Head of research, University of Eastern Finland, Centre for Tourism Studies
juho.pesonen@uef.fi
2. Lecture structure
1.
Introduction to market segmentation in
online context
•
•
2.
Goals for market segmentation
•
•
3.
4.
Definitions
Basic concepts
Managerial perspective
Academic perspective
Market segmentation in the Internet
Summary
Juho Pesonen
10.1.2014
2
4. Market segmentation
•Dividing customers into homogenous groups that
differ from each other as much as possible.
•Customers are typically divided into segments based
on what they do or want or who they are:
– Behavioural segmentation bases
– Socio-demographic segmentation bases
– Psychographic segmentation bases
•A priori and a posteriori approaches.
– A priori (common sense): segment structure is known
beforehand: nationality, age, gender, occupation.
– A posteriori (data driven): activities, interests, opinions, travel
motivations.
• Segments are based on data analysis!
Juho Pesonen
10.1.2014
4
6. Online marketing
•Use of ICTs to communicate company value
proposition to customers.
•ICTs have revolutionized the tourism industry (Buhalis
& Law, 2008)
– Travellers are increasingly using technology before,
during and after their trips.
•Use of technologies define the competitiveness of
tourism organizations and destinations (Buhalis &
Law, 2008).
•Companies can target their customer very efficiently if
they just know who their customers are.
Juho Pesonen
10.1.2014
6
7. Online market segmentation
•Marketing Mix: Product, Price, Place and
Promotion (4Ps, McCarthy, 1960)
– Later developments such as SIVA, 7Ps, 4Cs, 7Cs
•Internet has changed the way 4Ps are used in
marketing strategy.
– Product is more and more technology enhanced.
– Price is more flexible than ever.
– Place is online and everywhere.
•Internet consists of a wide variety of different places.
– Promotion is not company dependant any more.
Juho Pesonen
10.1.2014
7
9. Segmentation, targeting and
positioning (STP)
•Internet has also changed the STP process
– New segmentation bases (e.g. Internet use) and
means (Google Analytics).
– New targeting possibilities (e.g. online advertising,
social media, pay-per-click, online travel agencies).
– New possibilities for positioning products and
services (e.g. utilized social media channels,
YouTube videos, differentiation of Marketing Mix
elements)
– STP process is not static but changes continuously.
Juho Pesonen
10.1.2014
9
10. Goals for market segmentation
Esityksen nimi / Tekijä
10.1.2014
10
11. Why to do market segmentation?
•Almost impossible to target whole populations
with one product.
•Two schools of thought in market
segmentation research (Dhalla & Mahatoo,
1976).
– Behaviourally oriented school
•Consumer behaviour in focus.
•To understand consumers better.
– Managerially oriented school
•Benefits for companies.
•How the differences among segments can be used to
increase the productivity of firm’s marketing programs?
Juho Pesonen
10.1.2014
11
12. Why to do market segmentation?
• Two theories behind market segmentation (Möller, 2006):
1.
2.
•
Markets are heterogeneous
Companies can optimize their Marketing Mix based on these
differences.
Market segmentation enables creation of competitive
advantage:
–
Identifying strategic opportunities and niches.
–
Allocation of marketing budget.
–
Adjustment of product to the market need.
–
Finding markets with low competition.
–
Generating customer satisfaction through identified needs.
Juho Pesonen
10.1.2014
12
13. Managerial perspective
•Basically two different uses for market segmentation:
1. Examining whole market space.
• Identifying segments and niches where competitive
advantage can be gained.
• All the potential customers are segmented.
2. Examining current customers.
• Identifying customers with different expectations.
• Serving customers better.
• Current and/or previous customers are segmented.
• Companies need information on how to target
different customers!
Juho Pesonen
10.1.2014
13
14. Academic perspective
•Academic market segmentation research has focused
on:
– Developing and testing new market segmentation
bases.
– Testing existing market segmentation bases in
different contexts.
– Developing market segmentation methodology.
– Discussing the role of market segmentation in
business strategy.
Juho Pesonen
10.1.2014
14
16. Internet has changed and will change market
segmentation
- Role of emotions in ’likenomy’
- What kind of message will create most
engagement?
- What are the keywords members of a particular
segment use when searching for travel
products?
- What kind of picture to use in Facebook /
banner advertising?
- It is about collecting and utilizing data!
Juho Pesonen
10.1.2014
16
17. Role of market segmentation in online
marketing strategy
- Internet enables unbelievable efficient targeting
strategies for companies that know who to
target and where -> finding market segments
best suitable for the business strategy.
- Understanding what customer segment want
and value makes it possible for companies to
advertise efficiently on Facebook, Google
AdWords and even design websites.
Juho Pesonen
10.1.2014
17
18. Market segmentation in practice
- Traditionally market segmentation has been
often survey based with relatively little
behavior based segmentation.
- ICTs make it possible to collect and store more
behavioral data than ever before -> surveys will
become obsolete or very seldom used.
- Mobile site customization based on location.
Juho Pesonen
10.1.2014
18
19. Practical examples
- http://www.ebookers.com/
- New possibilities for dynamic packaging when
information systems develop:
activities, entertainment, transportation etc. (For
example amazon.co.uk)
- http://www.visitbritain.com/en/EN/
- Activity based segmentation.
- Nationality based segmentation.
- http://www.lomarengas.fi/en
- Destination segmentation.
Juho Pesonen
10.1.2014
19
20. Recommendation systems
- Tell me who you are and I tell you where to go
(Gretzel et al., 2004).
- Next step: automation based on actual behavior.
- www.tripadvisor.com & www.hotels.com
- Mobile recommendation system.
- How companies can deal with this?
- Pricing, quality, hotel amenities.
Juho Pesonen
10.1.2014
20
22. Summary
- ICTs have changed market
segmentation, targeting and positioning in
unpresedented ways.
- Especially managerial potential of market
segmentation is not fully utilized.
- Role of market segmentation and ways to do
will continue to change:
- Utilization of personal profiles.
- Intelligent software agents.
- Big data.
Juho Pesonen
10.1.2014
22